Tins to know about di tax wey FIRS wan begin collect from market pipo

Di Federal Inland Revenue Service (FIRS) don partner wit Market Traders Association of Nigeria, MATAN to collect Value Added Tax (VAT) from over 40 million traders for di kontri.

Dis traders mostly dey for informal markets.

FIRS say di Initiative aim na to reduce multiple taxation for di informal space.

Dis one include illegal taxes by “miscreants and self-imposed tax collectors” wey no dey end up for goment treasury.

Wit di use of technology-backed unified system, wey pipo sabi as VAT Direct Initiative, market traders go now get one digital Identification wit unique Tax Identification Number (TIN).

Na di TIN go dey track dia turnover and remittance to di revenue agency so dem go sure say transparency and accountability dey.

Di revenue bodi say only about 10.9% of di kontri income dey generated from tax.

One of di world lowest, while most of di revenue dey generated from crude oil sales.

Nigeria tax sabi pipo say goment need to drive domestic revenue generation to reduce borrow-borrow and di plenti debt profile wey already dey ground.

Since early June, Africa largest economy don begin one series of economic and fiscal reforms, wey President Bola Tinubu-led administration believe say go drive di kontri out of im current economic gbege.

Four benefits to sabi about di tax

According to di Nigeria Tax Join bodi, e get four major benefits of di FIRS partnership wit Market Traders Association of Nigeria (MATAN).

- E go eliminate multiple taxation for di market place: By improving security for markets, and tackle activities of touts, miscreants and self-imposed tax collectors, dis partnership go waka far to end to multiple taxation for markets.

- E go generate more revenue for di three tiers of goment: Dis partnership go lead to more VAT revenue generated, wey go den mean more moni go dey available to Federal, State and Local Goments to provide infrastructure, social amenities, and cater to welfare of citizens.

- E go lead to expansion of di kontri tax net: VAT Direct Initiative go see di service make one ogbonge entry to di informal sector, and den bring traders wey bin no dey registered for tax into di tax net, to pay dia taxes.

- E go bring traders into plenti possibilities and opportunities through partnerships wey get meaning, e go also boost di economy and support traders confidence for goment-private sector relationship.

key tins about di VAT Direct Initiative

Di idea be say FIRS dey partner wit di Market Traders Association of Nigeria to collect & remit VAT from dia members—especially those wey dey for di informal sector wit use of technology.

- Di Federal Inland Revenue Service (FIRS) na di agency of di Federal gomment of Nigeria wey dey assess, collect and account for tax and oda revenues for di Federal Government and di Federation. FIRS dey incharge of Value Added Tax for Nigeria.

- MATAN mean Market Traders Association of Nigeria. Na di umbrella bodi for all trading associations for Nigeria and dem found am for 1995. MATAN na di largest player for Nigeria market space wit membership of over 40 million traders across di kontri.

- FIRS dey partner wit MATAN to collect and remit Value Added Tax (VAT) from dia members - especially those wey dey for informal sector- wit use of technology. Dis Collabo dey known as di VAT Direct Initiative.

- Wetin be di VAT Direct Initiative (VDI)? Na collabo between FIRS and MATAN wia MATAN go promote awareness on VAT collection and remittance for di market place and informal sector, dem go also simplify VAT payment and remittance for market and informal sector wit digital platform wey dem build for am.

- MATAN na digital platform wey list members wit one digital ID and dey track dia turnover so dem go fit collect and remit VAT wey dem gather to FIRS.

- Di VAT Direct Initiative (VDI) na di first of im kind program wey go use technology to promote collabo between FIRS and di marketplace to collect and remit VAT.

- Through dis initiative, di FIRS go help tackle multiple taxation for di market place through partnership wit security pipo to limit di activities of touts, miscreants and self-imposed tax collectors wey dey collect illegal tax for Nigeria market spaces.

- Di VAT Direct Initiative (VDI) go boost VAT revenue generation for di three tiers of goment, wey in turn mean more moni to fund infrastructure, provide social amenities and cater for di welfare of citizens.

- MATAN members go receive ID card once dem dey listed. Dis card go carry dia Tax Identification Number (TIN) and oda personal details for tax purpose.

- Authorities say di VAT Direct Initiative (VDI) go get monitoring and evaluation team of FIRS officers and MATAN members to make sure transparency, accountability, prompt VAT remittance, commitment and reporting dey.

Who suppose pay di VAT Direct moni?

FIRS say to understand di VAT Direct Initiative you suppose sabi say FIRS - MATAN Partnership dey consider di following exemptions.

- Any business wey im annual turnover fall below N25 million no go need register or dey charged for Value Added Tax (VAT).

- Traders for VAT-Exempt goods wey include medical and pharmaceutical products, basic food items, educational books and materials, baby products, fertilisers, locally produced animal feeds, locally produced sanitary towels, pads or tampons and agricultural seeds and seedlings no dey expected to charge nor remit VAT under di VAT Direct Initiative.

- VAT-Exempt Services like medical services; services wey Micro-Finance Banks and Mortgage Institutions dey give; Play and Performances wey dey conducted by educational institutions as part of learning; school fees of nursery, primary, secondary and tertiary education; hiring or rental of tractors, ploughs and oda agricultural equipment for agricultural purposes; also shared passengers and road transport services no dey under di VAT Direct Initiative.